Top 10 Best Mutual Funds for SIP to invest in 2018

In the next 3 months, 2017 year would end. I have been recommending Top 10 Best Mutual funds to be invested through SIP every year. There are new additions based on the latest market trends. Some of the top SIP mutual funds recommended by me in the last few years gave as high as 30% annualized returns. Now its turn to look at Top 10 Best Mutual Funds for SIP to invest in 2018 in India. These Best mutual funds are filtered based on several key parameters and one can make it as a model portfolio and invest in these funds. These funds are suitable to moderate risk to high risk investors. Lets Review Top 10Best Mutual Funds to invest in 2018 in India.

These top 10 mutual funds to invest in India have been filtered, analyzed and shortlisted based on key parameters.

These mutual funds are picked based on highest returns received in the last 5 years, including when market was bearish / down trend.

Mutual fund Schemes rated by Crisil as Rank-1, Rank-2, Rank-3 and Rank-4 are picked for these top funds list which indicates consistent performance in all market cycles.

Value research Online (VRO) rated these funds as 5 star, 4 star and 3 star. Highest star rating indicates that these funds can perform well compared to its peers in various stock market cycles.

Filtered based on Mutual fund AUM (Assets under management) which has > 1000 Crores. This refers that more and more investors are investing in such funds create investor confidence about the fund.

Some of the funds would be a repetition from my earlier recommendations as they continue to perform well.

List of Top 10 Best Mutual Funds for SIP to Invest in 2018

You might be low risk investor or high risk investor. Since these Top 10 Funds are selected across various market capitalizations, you can go ahead and invest in these Top 10 mutual funds in India.

Top#1: SBI Blue Chip Fund

Fund Objective: The scheme would invest in stocks of companies whose market capitalization is at least equal to or more than the least market capitalized stock of BSE 100 Index.

Fund Performance: This is one of my favourite large cap fund. This fund has beaten all its peers and provided 18% annualised returns in last 5 years. If you have invested Rs 1,000 per month through SIP for 5 years, your total investment would have been Rs 60,000 and your investment value would have grown to Rs 96,000 now. Since Inception it gave 12% annualized returns. If one would have invested Rs 1 Lakh 5 years back, the invested amount would have grown to Rs 2.3 Lakhs.

Why to invest: Fund performed well in various market cycles. This fund beats all its peers and provided 18% annualised returns in the last 5 years compared to the S&P BSE 100 benchmark of 12% in a similar period. Risk Grade is low and Return grade is high. Crisil ranks it as Rank-1 and Value Research Online (VRO) as 5-Star (5 out of 5). This is one of the best mutual funds to invest in for long term of 10-20 years.

Top#2: Aditya Birla Sun Life Frontline Equity Fund

Fund Objective: This mutual fund scheme aims to generate long term growth of investment, through a stock portfolio with a target allocation of 100% equity aiming at being as diversified across various industries and or sectors.

Fund Performance: This is another fund which is my favourite. This fund has beaten all its peers and provided 17.7% annualised returns in last 5 years. Even in the short term of 1 year, it gave 15% returns which proves it as good short term fund too. If you have invested Rs 1,000 per month through SIP for 5 years, your total investment would have been Rs 60,000 and your investment value would have grown to Rs 91,000 now. Since Inception it gave 22% annualized returns. If one would have invested Rs 1 Lakh 5 years back, the invested amount would have grown to Rs 2.25 Lakhs. This has been one of the top performing mutual funds in India in the last 5-10 years.

Why to invest: Last year the asset size was Rs 12,000 Crores and currently this is over Rs 18,500 Crores. Fund performed well in bull markets and reduced losses during bear markets. This fund beats all its peers and provided 17.7% annualised returns in the last 5 years compared to the S&P BSE 200 benchmark of 13% in a similar period. Risk Grade is below average and return grade is above average. Crisil ranks it as Rank-2 and Value Research Online (VRO) as 4-Star (4 out of 5). This is one of the best mutual funds to invest in 2018 for SIP to invest for medium to long term of 10-20 years. If you want to just invest in Top 5 Mutual Funds for SIP, you should make this mutual fund scheme as part of your portfolio.

Fund Objective: This mutual fund's objective is to invest in 20 large cap companies from the top 200 stocks listed on the NSE on the basis of market capitalization and since it has already crossed Rs 1,000 Crores asset size, it invests beyond Top 200 Stocks in NSE.

Fund Performance: This fund has beaten all its peers and provided 16% annualised returns in last 5 years. If you have invested Rs 1,000 per month through SIP for 5 years, your total investment would have been Rs 60,000 and your investment value would have grown to Rs 90,500 now. Since Inception it gave 15% annualized returns. If one would have invested Rs 1 Lakh 5 years back, the invested amount would have grown to Rs 2.1 Lakhs.

Why to invest: Fund performed well in various market cycles. This fund beats all its peers and provided 16% annualised returns in the last 5 years compared to the S&P BSE 100 benchmark of 12% in a similar period. Risk Grade is below average and return grade is above average. Crisil ranks it as Rank-3 and Value Research Online (VRO) as 4-Star (4 out of 5). This is one of the good mutual fund for SIP to invest for long term of 10-15 years.

Top#4: Reliance Small Cap Fund

Fund Objective: This scheme aims to generate capital appreciation by investing in smaller companies. This is just 6 years old scheme. However, in these 6 years, it has beaten its peers with high returns.

Fund Performance: This fund has beaten all its peers and provided 30% annualised returns in last 5 years. If you have invested Rs 1,000 per month through SIP for 5 years, your total investment would have been Rs 60,000 and your investment value would have grown to Rs 136,000 now. Since Inception it gave 21% annualized returns. If one would have invested Rs 1 Lakh 5 years back, the invested amount would have grown to Rs 3.7 Lakhs. This is one of the top mutual funds india which proved its performance in just 5 years time frame. This is one of the best performing mutual funds in India in the last 5 years.

Why to invest: This smallcap fund has performed well in just 6 years of its history. This fund beats all its peers and provided 30% annualised returns in the last 5 years compared to the S&P BSE Small Cap benchmark of 18% in a similar period. Risk Grade is above average and return grade is above average. Crisil ranks it as Rank-2 and Value Research Online (VRO) as 3-Star (3 out of 5). This is one of the Top 10 Mutual Funds for sip to invest in 2018 for medium to long term of 5-10 years.

Top#5: Mirae Asset Emerging Bluechip Fund

Fund Objective: This fund aims to generate income and capital appreciation from a diversified portfolio predominantly investing in Indian equities and equity related securities of companies which are not part of the top 100 stocks by market capitalization and have market capitalization of atleast Rs.100 Crores at the time of investment.

Fund Performance: This fund has beaten all its peers and provided 29% annualised returns in last 5 years. If you have invested Rs 1,000 per month through SIP for 5 years, your total investment would have been Rs 60,000 and your investment value would have grown to Rs 128,000 now. Since Inception it gave 24% annualized returns. If one would have invested Rs 1 Lakh 5 years back, the invested amount would have grown to Rs 3.65 Lakhs.

Why to invest: This midcap fund has performed in various market cycles making this as unique fund. This fund beats all its peers and provided 30% annualised returns in the last 5 years compared to the NIFTY Free float midcap 100 benchmark of 18% in a similar period. Risk Grade is low and return grade is high. Crisil ranks it as Rank-1 and Value Research Online (VRO) as 5-Star (5 out of 5). This is one of the best midcap mutual fund for 2018 for SIP to invest for medium to long term of 5-10 years.

Top#6: Franklin India Smaller Cos Fund

Fund Objective: This fund’s objective is to generate long-term capital appreciation from a portfolio of mid-cap and small-cap companies. It invests upto 75% in smaller companies.

Fund Performance: This fund has beaten all its peers and provided 30% annualised returns in last 5 years. If you have invested Rs 1,000 per month through SIP for 5 years, your total investment would have been Rs 60,000 and your investment value would have grown to Rs 120,000 now. Since Inception it gave 16% annualized returns. If one would have invested Rs 1 Lakh 5 years back, the invested amount would have grown to Rs 3.7 Lakhs.

Why to invest: This small cap fund has performed well in various market cycles. This fund beats all its peers and provided 30% annualised returns in the last 5 years compared to the NIFTY Free float midcap 100 benchmark of 18% in a similar period. Risk Grade is low and return grade is average. Crisil ranks it as Rank-3 and Value Research Online (VRO) as 5-Star (5 out of 5). This is one of the top mutual fund for SIP to invest for medium to long term of 5-10 years. This is one of the best performing mutual funds in india in smallcap segment.

I have recommended Principal Emerging Bluechip fund (part of midcap/smallcap) last year as part of top 10 funds. This fund too performed well by providing 29% returns in the last 5 years, however since the above 3 midcap/smallcap funds are comparatively better, this fund has been pushed to 4th position in midcap/small cap position. In case you have invested in this fund, continue to invest in such fund.

I have also recommended DSP BR Microcap fund last year which is running well. However since the size of the fund is increasing they have stopped fresh investments. Existing SIP's are continuing. Hence I have recommended this Fund now. If you are invested, continue to invest in this fund. This one of the top peforming mutual funds in India in small cap segment.

Fund Objective: The fund seeks to achieve capital appreciation through investments in Indian companies/sectors with high growth rates or potential. It will focus on companies offering the best trade-off between growth, risk and valuation. The fund managers will follow an active investment strategy and will be focusing on rapid growth companies which will be selected based on growth, measures such as Enterprise value, growth rate, price/earnings/growth, forwardprice/sales, and discounted EPS.

Fund Performance: This fund has beaten all its peers and provided 22% annualised returns in last 5 years. If you have invested Rs 1,000 per month through SIP for 5 years, your total investment would have been Rs 60,000 and your investment value would have grown to Rs 100,000 now. Since Inception it gave 14% annualized returns. If one would have invested Rs 1 Lakh 5 years back, the invested amount would have grown to Rs 2.7 Lakhs.

Why to invest: This diversified fund has performed well in various market cycles. This fund beats all its peers and provided 22% annualised returns in the last 5 years compared to the NIFTY 500 benchmark of 14% in a similar period. Risk Grade is average and return grade is high. Crisil ranks it as Rank-3 and Value Research Online (VRO) as 5-Star (5 out of 5). This is one of the top and best mutual fund for SIP in 2018 to invest for medium to long term of 5-10 years.

Top#8: Kotak Select Focus Fund

Fund Objective: The mutual fund scheme aims for capital appreciation from a diversified portfolio of equity and equity related instruments, generally focused on a few selected sectors.

Fund Performance: This fund has beaten all its peers and provided 20% annualised returns in last 5 years. If you have invested Rs 1,000 per month through SIP for 5 years, your total investment would have been Rs 60,000 and your investment value would have grown to Rs 100,000 now. Since Inception it gave 15% annualized returns. If one would have invested Rs 1 Lakh 5 years back, the invested amount would have grown to Rs 2.5 Lakhs.

Why to invest: This is one of the best diversified fund. This fund beats all its peers and provided 20% annualised returns in the last 5 years compared to the NIFTY 200 benchmark of 13% in a similar period. Risk Grade is average and return grade is Above Average. Crisil ranks it as Rank-1 and Value Research Online (VRO) as 4-Star (4 out of 5). This is one of the good diversified fund among Top 10 Mutual Funds for sip to invest in 2018 for long term of 10-20 years.

Top#9: ICICI Pru Balanced Mutual Fund

Fund Objective: The scheme invests in equities and related securities as well as fixed income and money market securities. It invests 60% minimum in equity and balance in debt related instruments.

Fund Performance: This fund has beaten all its peers and provided 18% annualised returns in last 5 years. If you have invested Rs 1,000 per month through SIP for 5 years, your total investment would have been Rs 60,000 and your investment value would have grown to Rs 92,000 now. Since Inception it gave 15% annualized returns. If one would have invested Rs 1 Lakh 5 years back, the invested amount would have grown to Rs 2.3 Lakhs.

Why to invest: This is one of the best diversified fund. This fund beats all its peers and provided 18% annualised returns in the last 5 years compared to the Balanced Fund category benchmark of 13% in a similar period. Risk Grade is below average and return grade is Above Average. Crisil ranks it as Rank-2 and Value Research Online (VRO) as 4-Star (4 out of 5). This is one of the top and best balanced mutual fund for SIP to invest for long term of 10-20 years.

Top#10: HDFC Balanced Fund

Fund Objective: The scheme invests in equities and related securities as well as fixed income and money market securities. It invests 60% minimum in equity and balance in debt related instruments.

Fund Performance: This fund has beaten all its peers and provided 17.7% annualised returns in last 5 years. If you have invested Rs 1,000 per month through SIP for 5 years, your total investment would have been Rs 60,000 and your investment value would have grown to Rs 95,000 now. Since Inception it gave 15% annualized returns. If one would have invested Rs 1 Lakh 5 years back, the invested amount would have grown to Rs 2.25 Lakhs.

Why to invest: This is the second best balanced fund. This fund beats all its peers and provided 18% annualised returns in the last 5 years compared to the Balanced Fund category benchmark of 17.7% in a similar period. Risk Grade is below average and return grade is Above Average. Crisil ranks it as Rank-1 and Value Research Online (VRO) as 4-Star (4 out of 5). This is one of the good balanced mutual fund for SIP to invest for long term of 10-20 years.

Complete list of Top 10 Mutual Funds to invest for long term in 2018 are given below

Last year, I have recommended apart from some of the above listed funds. You should continue to invest in them. If you would like to add more funds, select some of the new funds indicated in this article.

Conclusion: These funds are the Best SIP to invest for highest growth for medium to long term. This is standard portfolio which is designed for all kinds of investors like high risk investors and moderate risk investor. If you are a high risk investor and expecting higher returns, you can add more funds from mid-cap/small-cap segment. If you are moderate risk investor, you can add more funds in balanced mutual fund category which are little low risk compared to other funds. If you simply want to invest in a diversified portfolio, go ahead and invest in these top 10 mutual funds to get high returns in coming years.

Happy investing in best mutual funds in 2018!!!

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462 comments

Hi Suresh,
I am selecting total 3 funds (Large,Mid ,small cap) for my long term goals. Now the question is , i have 7 goals . How do i map these 3 funds to all 7 goals. or Should i create same 3 funds into 7 separate portfolio for each goal. I mean Different folio for same fund. Kindly clarify. Which is best and easier to manage portfolio. Single vs Multiple portfolio for goals

Hi Kalai, You should invest based on financial goal + Tenure. If all your goals have same tenure, your job is easy. You can just go ahead and invest in these 3 funds for that tenure. All would mature at same time, hence your planned wealth can be created. However if they have different tenure, my advice is to invest in them seperately.

Thanks Suresh,
All my goals tenure is differ by few years . As per your advice i have to invest them separately. In that case do i need to create more funds for all 7 goals. If i keep 3 funds(Large,mid,UST fund) per goal. Then for 7 goals, need to create 21 new funds. Is that correct approach. kindly advise.

Kalai, You can adopt several ways 1) One is what you said 2) Invest in 5-8 mutual funds. SIP value should be inline with the value of your goals. e.g. you have 2 goals Child Foreign education (10 years, Rs 10,000 per month investment required) and retirement (25 years, Rs 5,000 pert month investment required). Hence when you are investing in 3-5 funds, you can invest Rs 15,000 per month for 10 years and later on you can reduce if required 3) Create mutual fund account in your spouse name too. Now you can play with these 2 MF accounts and create SIPs of 3-5 funds based on goals. You can create 3-4 goals in your account and another 3-4 goals in your spouse account. These are only suggestions, there are several other ways even to do that.

Thanks Suresh. Kindly come up with article on how to manage Single vs Multiple portfolio for long term goals.

In your second point, Combine monthly required amount for 2 goals(child edu, Retirement) , i feel there is chance of mixture of corpus of each goal. suppose if i redeem for child education in 10 years, i should not overdraw from my retirement corpus amount.
Even reducing equity portion in overall investment amount can be tedious. Always the mix of corpus of 2 goals are unavoidable.

Thatswhy request you to come up with some methods in detail in your next post to educate investors .

All my goals are differ by few years in tenure . For each goal , i am selecting one Largecap ,One mid cap and one UST debt fund . For 7 goals, Should i create total 21 new funds. Is this approach valid.

Is there any disadvantage in investing a lumpsum amount in mutual fund???
Is SIP is much better or safe than a lumpsum investment???Apart from it what is the best option to invest to have a good return and a withdrawal of money when in need?? Awaiting for your reliable guidance.

SIP is always better as you are not investing one time (markets could be good now, but become worse and vice versa). If you are looking to invest money and withdraw when you need (like emergency money), it would be better to invest in debt funds or liquid funds. Here your goal is to take out money faster then returns.

Hi Ranuak, 1) You are investing in good funds. 2) You can invest in some of the large cap /diversified funds like Birla SL Frontline equity fund, SBI Bluechip fund etc., 3) If your goal is for long term of 15-20 years, keep adding large cap and diversified funds going forward

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Suresh KP i.e. me, have written 1800+ articles on this Blog. I love doing analysis on various Best Investment Plans like mutual funds, Stocks, IPO’s, NCD Bonds, Insurance products. If you like our blog, you can share some of the good articles on your Facebook or Twitter. This would be the BIGGEST gift which you would be giving to us.